Death Spiral (insurance)
Death spiral is an insurance plan with costs that rapidly increase as a result of changes in the covered population. It is the result of adverse selection in insurance policies where lower risk policy holders choose to change policies or be uninsured. The term is found in the academic literature at least as early as Cutler and Zeckhauser's 1997 paper "Adverse Selection in Health Insurance" which refers explicitly to an "adverse selection death spiral".
Read more about Death Spiral (insurance): Health Insurance Spiral
Famous quotes containing the words death and/or spiral:
“Lo! Death has reared himself a throne
In a strange city lying alone
Far down within the dim West,
Where the good and the bad and the worst and the best
Have gone to their eternal rest.”
—Edgar Allan Poe (1809–1849)
“The spiral is a spiritualized circle. In the spiral form, the circle, uncoiled, unwound, has ceased to be vicious; it has been set free.”
—Vladimir Nabokov (1899–1977)